5 Best Low Volatility Stocks to Buy According to Hedge Funds

In this article, we discuss the 5 best low volatility stocks to buy according to hedge funds. To read the detailed analysis of the current market conditions, go directly to the 13 Best Low Volatility Stocks to Buy According to Hedge Funds.

5. UnitedHealth Group Incorporated (NYSE:UNH)

5-yr Monthly Beta: 0.56

Number of Hedge Fund Holders: 113

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The stock’s 5-year monthly beta is 0.56.

On April 16, UnitedHealth Group Incorporated (NYSE:UNH) announced its quarter-one earnings result. The company reported non-GAAP EPS of $6.91, which surpassed the estimates by $0.29. The revenue grew 8.6% year-over-year to $99.79 billion and topped the market estimates by $490 million.

In the fourth quarter of 2023, 113 hedge funds had stakes in UnitedHealth Group Incorporated (NYSE:UNH), with total positions worth $11.198 billion. This is compared to 104 funds with positions worth $10.95 billion in the preceding quarter. As of December 31, 2023, GQG Partners is the most significant shareholder in the company with a stake worth $1.8 billion.

ClearBridge Investments stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2024 investor letter:

“Given our view that the overall market looks expensive, mostly due to mega cap valuations, the low likelihood that technology can continue to deliver well above market returns and an expected slowdown in economic growth, risk management has guided our recent positioning activity. We have been consistently trimming from the select bucket and redeploying into undervalued stable and cyclical names, while also being cognizant of position sizing to maintain the latitude to add to names when prices become attractive.

We were also active in adding to stable bucket investments PayPal and UnitedHealth Group Incorporated (NYSE:UNH) where negative near-term sentiment led to more attractive risk/reward profiles. We added to electronic payments provider PayPal as we have growing confidence that new CEO Alex Chriss’s strategic focus areas can improve the company’s performance, particularly in the key branded business. We added to our UnitedHealth position after shares were pressured due to fears over competition among managed care providers and rising medical loss ratios in the industry. We believe the company will be able to “re-price” for higher medical costs, making this pressure transitory and we see competitive concerns as overblown.”